Hi All,
I would like to know, whether provisions of Section 14A read with rule 8D would be applicable if the only investment made is in the shares of a foreign company. I would require clarification, because any income earned by my client from gthe foreign investment would not be exempt from tax.
Regards,
Amit
The rules states the value of investment which should be included is the investment from which the income does not or shall not form part of the total income, as appearing in the balance sheet of the assessee.
So if the investment made is in the shares of a foreign company does not generate any exempt income then the same shall not be included in computing the disallowance.
Agree with Aditya Sir
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